And it's really time we start thinking more creatively about how they can be fused.

Joint guaranty for loans is more than an enterprise, right?

It could be patents, it could be licenses.

One, two, three enterprises are put together to repay loans.

Let's see what happens when n is equal to 2.

That's called paying off the principal.

The stability this provides is giving the farmers the confidence to invest.

I'm pulling out of his scheme.

Well, what's going to happen?

So what is our payment amount?

So that's a very handsome return.

So once again, it's just a loan to someone else.

So this is the treasury yield curve.

Well we learned what happens.

And so that cash ended up here.

So the risk managers within the bank think they have a great deal.

Whether people will continue to loan them money.

Well, someone has to give you we could call it a bridge loan because they're giving you a financial bridge from here to where you need to go.

And the corollary of more people willing to lend, is you that the actual standards go down.

What I want to do in this video is go over the math behind a mortgage loan.

You can kind of say they keep on renewing those loans.

What are you carrying?

And today, less than five years in,

And hopefully, these banks will still lend to the farmer and still lend to the the guy who wants to build a factory.

But these were essentially no down payment.

We realize it was just because financing got easier.

We disproved all that.

At the time, there was a microlending group in the village that gave her a 65 dollar loan.

Here's my track record and then he would just get a bunch of investors so lets say he's able to find 20 investors and that's all he's able to find so this is 20 right here, and I'm not going to count but, let's say that there's 20 slices right over here

It's my code, E for equity. 80,000 loan.

And as soon as some of these people who had no jobs and got these 1 million loans, they probably couldn't even pay the mortgage on their loan, not to speak of continuing it, or even pay the low rate on the original teaser loan.

We're now moving into East Africa.

So this is lending some cash.

And so with patient capital from Acumen and other organizations,

CA What's the bottleneck preventing this stuff getting from scale?

Because investors saw the potential for return at a time of slowing economic growth, and so they created financial products and financial innovation tailored to the emerging markets.

I was able to scan the picture, blow it up to exactly full size.

But the banks are still pretty confident then, and they're like, no.

The standards for getting a loan went lower and lower.

So just this is liability, 750,000.

We can start building local distribution, and actually, it can cost the public sector much less.

And that's the best they could do.

The least important form of capital, in this project, is financial capital money.

It is generally true that if the money supply and the money supply is more than just the amount of dollars that are printed.

They are too far in debt to get the small business loan.